Standard & Poor's analysts believe home prices will drop between 7% and 10% through 2011, erasing any improvements prices have recently made.

...

"Low mortgage rates will likely continue to encourage refinancing, but their influence on home buying activities has been limited due to the weak housing market and a lack of demand," S&P credit analyst Erkan Erturk said.

If this is the case, then really you can kiss any hope of a real recovery goodbye.